Bitcoin (BTC) has rebounded from the levels of $ 3200 to $ 5000. Most of the investors have rejoiced the rise in Bitcoin (BTC). However, it has been a one-way rally in the last 60 days or so. The problem with one-way rally is that they can wither away quite easily. Bitcoin (BTC) can once again head to the levels of $ 3200. Due to this very reason, it is important to understand the global trends which can impact this Bitcoin rebound.
5 Global Trends That Can Affect Bitcoin Rebound:
1. Quantum Computing:
You might think that what quantum computing has to do with Bitcoin (BTC). The truth is that, the development of quantum computing is a threat to Bitcoin (BTC) and Ethereum (ETH). With the help of quantum computing, you can easily go through the public keys of Bitcoin (BTC) and Ethereum (ETH) wallets. You can then scan which one has a large number of Bitcoins. Once quantum computing evolves to the right stage, then you can use its power to reverse engineer the private key. After the Public Key and the private key is known, anyone can transfer those Bitcoin’s and ETH tokens. That is why, it is important for Bitcoin (BTC) and Ethereum (ETH) to protect against this existential threat. Once they are able to add an additional layer of security, it will be easy for Bitcoin (BTC) to sustain its rebound.
2. Transaction Medium:
The use of Bitcoin (BTC) and trading is increasing day by day. However, Bitcoin (BTC) was designed to be a transaction medium rather than just a trading platform. This is a perennial problem which is facing Bitcoin (BTC). It can surely impact the Bitcoin rebound if the volumes decrease. Once the volumes decrease, the actual use of Bitcoin (BTC) is already low which can trigger a downfall once again.
There are certain reports that the rebound of Bitcoin (BTC) from the levels of $ 3200 to $ 5000 was due to a large order by a single buyer. It is estimated that the order was around $ 100 million. It clearly indicates that whenever there is a large order, the price of Bitcoin (BTC) can easily move in either direction. Similarly, if there is a large sell order, it can vanish the gains in the recent Bitcoin rebound.
Mining can impact Bitcoin (BTC) in either way. At $ 3200, Bitcoin (BTC) mining was not profitable. It might be slightly profitable at the levels of $ 5000 where it is trading currently. However, the mining profits can go on decreasing due to the increasing difficulty. That is why, mining is a trend which can certainly impact the Bitcoin (BTC) prices in the longer term.
5. Hacking Saga:
Bitcoin (BTC) rates on credibility. That is why, the hacking saga of various cryptocurrency exchanges can dent the popularity of Bitcoin (BTC). With more and more cryptocurrency exchanges getting hacked, it becomes risky to invest in Bitcoin (BTC). If there is another hack, it can easily sink Bitcoin (BTC) on a weekly basis. That is why, it is another trait which Bitcoin has to face.
So, if you’re one of the investors who is happy due to the Bitcoin rebound, these are the five trends which you need to look at. Bitcoin (BTC) can give up its gains easily due to these threats.